Bundle: Accounting, Chapters 1-13, 26th + Working Papers, Chapters 1-17 For Warren/reeve/duchac's Accounting, 26th And Financial Accounting, 14th + ... For Warren/reeve/duchac's Accounting, 26th
26th Edition
ISBN: 9781337498159
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 25, Problem 25.11EX
To determine
Differential Analysis: Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business.
To Prepare: The differential analysis of Company PL as on June 14, to decide whether to sell rough cut or process it further to finished cut lumber.
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Sell or Process Further
Bunyon Lumber Company incurs a cost of $398 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $562 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $522 per hbf, which can be sold for $754 per hbf.
Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.
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SellRough-Cut(Alternative 1)
ProcessFurther intoFinished Cut(Alternative 2)
DifferentialEffecton Income(Alternative 2)
Revenues, per 100 board ft.
$
$
$
Costs, per 100 board ft.
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Income (Loss), per 100 board ft.
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Determine whether to sell rough-cut lumber (Alternative 1) or process further into…
Sell or Process Further
Jackson Lumber Company incurs a cost of $374 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for $546 per hbf. An
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Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2). For
those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis
Sell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2)
August 9
Revenues, per 100 board ft.
Costs, per 100 board ft.
Income (Loss), per 100 board ft.
Sell
Rough-Cut
(Alternative 1)
$
Process
Further into
Finished Cut
(Alternative 2)
Differential
Effect
on Income
(Alternative 2)
4
Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).
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Sell or Process Further
Bunyon Lumber Company incurs a cost of $390 per hundred board feet (hbf) in processing certain "rough-cut" lumber, which it sells for
$52 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $524 per hbf, which can be sold for $742 per hbf.
Prepare a differential analysis dated August 9 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut
lumber (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis
Sell Rough-Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2)
August 9
Process
Differential
Sell
Further into
Effect
Rough-Cut
on Income
(Alternative 2) (Alternative 2)
Finished Cut
(Alternative 1)
Revenues, per 100 board ft.
Costs, per 100 board ft.
Income (Loss), per 100 board ft.
Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).
Sell rough-cut…
Chapter 25 Solutions
Bundle: Accounting, Chapters 1-13, 26th + Working Papers, Chapters 1-17 For Warren/reeve/duchac's Accounting, 26th And Financial Accounting, 14th + ... For Warren/reeve/duchac's Accounting, 26th
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